The White Law Group is investigating the liability that brokerage firms may have for selling Telesis oil and gas private placements.
According to their website, Telesis Operating Co. is an oil and gas exploration and production company that owns and operates approximately 165 wells throughout western Texas. In addition, the company is active in the acquisition of producing oil and gas properties. Telesis has apparently been in the industry since 1980 and is headquartered in Ft. Worth, Texas.
Oil and gas private placements are speculative and inherently high risk investments. Typically these types of investments lack liquidity, and are better suited for sophisticated and institutional investors. In addition, oil and gas private placements are exempt from registration with the Securities and Exchange Commission, and therefore they lack the same regulatory oversight as more traditional investments.
Brokerage firms that sell oil and gas private placements, like Telesis, have a fiduciary duty to perform adequate due diligence to determine if the investment is appropriate for the client given the client’s age, net-worth, financial objectives, investment experiences, financial needs, and risk tolerance. Unfortunately, the high sales commissions associated with oil and gas investments often provides some brokerage firms with enough incentive to overlook suitability requirements. If a brokerage firm makes unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment they may be liable for investment losses.
If you would like to speak with a securities attorney regarding your ability to recover investment losses in an oil and gas investment, please call The White Law Group at (312)238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, please visit our website at www.WhiteSecuritiesLaw.com.